Rwandan corporate finance advisory firm, Gahigiro Capital has supported Lipa Later, a regional consumer financing platform to secure a US$ 10 million debt facility from a US based venture capital firm. It is the latest in a series of capital raising that Gahigiro Capital Limited has facilitated for start-ups operating on the African continent, and the first venture debt finance facilitation by the firm. It is the largest debt financing facility for Lipa Later to date. Venture debt is a type of debt financing to technology-enabled companies by specialized banks or non-bank lenders to fund working capital or other capital expenses. Michael Shema, the Managing Director of Gahigiro Capital noted: “Start-ups on the continent are just discovering venture debt financing as an additional form of capital raising. Venture debt on the continent is still extremely rare and only starting to take off. We (Gahigiro Capital) are proud to have supported Lipa Later on this landmark transaction that will see them receive much needed capital to be able to truly scale and further prove their business model.” There are lots of benefits to venture debt financing for founders and according to Shema, it can help start-ups and early-stage investors to retain ownership while simultaneously raising capital for their firms. “It offers a multitude of advantages such as a reduction in equity dilution and a lower overall cost of capital for the start-up. Furthermore, the flexibility of most venture debt financiers allows them to customize their offering to the business needs and cycles.” According to Eric Muli, the Co-Founder and Chief Executive Officer of Lipa Later, the funding will help the Buy Now Pay Later platform to expand into new markets on the continent. “We are extremely excited to be working with Gahigiro Capital as we look towards asserting our dominance as Africa’s leading buy now pay later player. With the financing, we will be opening new markets and doubling down in our existing markets over the next 12 months. We thank Gahigiro Capital for believing in our vision and hope to continue on this important relationship for both our organizations.” Lipa Later, is a trusted Buy Now Pay Later (BNPL) company with operations in Rwanda, Kenya, Uganda and Nigeria. Lipa Later, which started in Kenya in 2018 has built a reputation for delivering value for its investors right from its early days. Other than the traditional offline method of buyers purchasing items in stores, Lipa Later has tapped into the rapidly growing online presence across Africa and built a unique Buy Now Pay Later software application that integrates into e-commerce platforms enabling merchants to sell products directly to consumers and pay for them in affordable monthly instalments. Lipa Later’s proprietary one-of-a-kind credit scoring, and machine learning system enables the consumer to sign up and get a credit limit in seconds without the need for lengthy documentation and credit approval process. Gahigiro Capital was the sole transaction advisor on this US$10 million capital raise. About Gahigiro Capital Gahigiro Capital Ltd. is a corporate finance & advisory firm headquartered in Kigali, Rwanda that provides services to start-ups, SMEs, corporates, and multinationals operating across sub- Saharan Africa. Founded in 2016, Gahigiro has a large and diversified network of institutional Africa focused investors. They offer capital raising services, mergers and acquisitions services, placement agent services, and advisory services. With Rwanda’s central location and a dynamic bilingual team, Gahigiro is well-positioned to serve both Francophone and Anglophone African countries with long-term strategic advice to fuel their growth and development. For more information, please visit www.gahigirocapital.com About Lipa Later Founded in 2018, Nairobi-based Lipa Later provides a point-of-sale credit program that allows retailers to sell goods and services more efficiently to consumers with repayments made in affordable monthly installments. It is a leading third-party installment plan for retailers in East Africa and currently operates in Kenya, Rwanda, Uganda and Nigeria. The company’s product offering allows for both online and offline integration with retailers and both online and offline sales platforms including mobile wallets for consumers. For more information, please visit https://lipalater.com
